IFC Opens London Markets to Commemorate First London-Listed Renminbi Bond

London, March 26, 2014--IFC Executive
Vice President and CEO Jin-Yong Cai today rang the opening bell on the
London Stock Exchange to commemorate the Corporation's first London-listed
renminbi bonds. IFC, a member of the World Bank Group, raised 2 billion
renminbi from a range of international investors through the bond offering
earlier this month, signaling continued confidence in the outlook for the
Chinese currency.
"IFC is committed to supporting the development of China’s capital
markets and the internationalization of the renminbi," Cai said. “The
success of IFC's first London-listed issue demonstrates the strength of
this platform for attracting international investment in offshore renminbi."
The Financial Secretary to the U.K. Treasury, Sajid Javid, said: "I
am delighted that IFC has listed its first renminbi bond in London. This
is a real vote of confidence. Already nearly two thirds of all renminbi
trading outside of Mainland China and Hong Kong takes place in London and
IFC’s decision to issue here provides yet more evidence that the capital
is the western hub for renminbi. The government will continue to work very
closely with the private sector, and the Chinese and Hong Kong authorities,
to build a thriving renminbi market in London.”
IFC issued 1 billion in renminbi-denominated bonds on March 4 to support
the internationalization of the Chinese currency. The issuance marked the
first benchmark renminbi bond on the London Stock Exchange by a multilateral
institution and attracted investors from around the world. Tapping continued
investor interest, IFC doubled the issue on March 13. Proceeds of the bonds
will be used for onshore investment in China.
IFC supports the development of China’s financial sector by working with
the government to create a regulatory and legal environment that supports
the growth of financial services, promotes the microfinance industry, strengthens
commercial banks, and develops the country's financial and capital markets.
Mature financial and capital markets allow companies to efficiently access
the financing they need to grow and create jobs.
IFC previously pioneered the international issuance of renminbi-denominated
bonds in China (Panda bonds) and Hong Kong (Dim Sum bonds). IFC was also
the first to set up a program to regularly issue offshore renminbi-denominated
discount notes.
In China, IFC focuses on private sector investments that help fight climate
change, enable rural development, and promote sustainable Chinese investments
overseas. Since 1985, IFC has invested about $7 billion (around 42 billion
yuan) in more than 270 projects in the country, including nearly 3 billion
yuan in local-currency investments.
About IFC
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
www.ifc.org
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